CRISIL reaffirms 'A-/Stable' rating on Safari Industries bank facilities

CRISIL Ratings has combined the business and financial risk profiles of Safari and its fully owned subsidiary.

Jun 07, 2021 02:06 IST India Infoline News Service

Safari Industries (India) Ltd has announced that CRISIL has reaffirmed CRISIL A-/Stable and CRISIL A2+ on long term and short term bank loan facilities of the company worth Rs150cr.

CRISIL Ratings’ rating on the bank facilities of Safari Industries India Ltd (Safari) continues to reflect an established market position in the Indian luggage industry and a strong financial risk profile.

These strengths are partially offset by working capital-intensive operations and exposure to volatility in foreign exchange (forex) rates and input prices.

The overall impact on the operating performance, though significant, is expected to be transitionary and is likely to gradually recover over medium term, according to the rationale report.

For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of Safari and its fully owned subsidiary, Safari Lifestyles Ltd (SLL). 

At around 2:50 PM, Safari Industries (India) was trading at Rs680 apiece up by Rs1.4 or 0.21% on Sensex.

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